TITLE:
Digital Sustainability, Sustainable Innovation Capability, Sustainable Business Model Innovation and Sustainable Organizational Performance: Unraveling the Dynamics for Manufacturing SMEs
AUTHORS:
Soukaina Zaoui, Haiwei Zhou
KEYWORDS:
Digital Sustainability, Sustainable Business Model Innovation, Sustainable Innovation Capability, Sustainable Organizational Performance, Moroccan Manufacturing SMEs
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.16 No.7,
July
31,
2026
ABSTRACT: This study examines the impact of sustainable digital initiatives on sustainable performance of small and medium-sized enterprises (SMEs) in the context of Moroccan manufacturing industry. It will also explore the mediation mechanism in which sustainable business model innovation (SBMI) and sustainable innovation capability (SIC) mediate the relationship between digital sustainability (DS) on sustainable organizational performance (SOP). Using data from Moroccan manufacturing SMEs across five different industry sectors, this study conducts a survey and uses partial least squares-based structural equation modelling method (PL-SEM) to validate and analyze the answers of 202 owners and managers. Data analysis has revealed that SBMI has emerged as a powerful determinant to convert sustainable digital initiatives of SMEs into sustainable performance, while SIC showed no significant impact on the relationship. The study results enhance the understanding of how Moroccan manufacturing SMEs can harness DS to sustain their performance and provide practical implications for managers to combine business models and innovation capabilities with sustainability-oriented strategies while strengthening their position in emerging markets. It also extends the knowledge concerning sustainability initiatives of Moroccan SMEs amid growing global sustainability demands.